Brussels, 21/03/2011 (Agence Europe) - The European Commission has reluctantly admitted that a proposal is likely to be brought forward in April to help olive oil producers overcome the current crisis. At the behest of Spain, which, at the Agriculture Council on Thursday of last week, received the support of six other countries (Greece, Italy, Portugal, France, Cyprus and Poland), Agriculture Commissioner Dacian Cioloº agreed to look at the situation in the olive oil sector. The Management Committee will discuss the Commission proposal probably on 13 April.
The Spanish minister Rosa Aguilar argued on Thursday for the “immediate” activation of Community aid for the private storage of olive oil (a mechanism which allows oil to be taken off the market in order to push up prices) as the sector “can't go on like this”, Spanish news agency EFE reports. The commissioner agrees that the measure should be given consideration but said that the aim of such a move is to resolve economic problems not economic difficulties. The Commission says that not all the conditions have been met so that aid for the private storage of olive oil cannot, for the moment, be authorised. Prices in Spain are higher than the price set in the Community regulation which allows the intervention measure to be triggered and it has not yet been shown that there is market disturbance. According to information, in 2010, olive oil prices were 6-13% (depending on the quality of the oil) higher than the aid for private storage activation price. The commissioner has not closed the door on aid of this kind, the Spanish minister is again quoted by EFE as saying, because Spain is no longer alone.
The situation is worse for Greece olive oil producers than for Spanish. The fall in prices on the Greek market is such that it could reveal structural problems and, thus, meet the conditions required for private storage aid to be allowed. (L.C./transl.rt)